March 1, 2009

This information is drawn from the TEGL which is being drafted to provide guidance to the field on implementing the Economic Stimulus monies.  The TEGL is still in "draft" however, so some of the guidance language is still subject to change.

- The three guiding principles in utilizing the Recovery Act monies are:   

    Transparency and accountability in the use of Recovery Act funding

    Timely spending of the funds and implementation of activities

    Increasing workforce system capacity and service levels

- The focus on the use of the money is to boost the capacity of the workforce system and increase service levels to meet the growing demand for workforce services.  It is a supplement to existing WIA and W-P formula funding and is not intended to replace state funding currently dedicated to workforce development.

- For the WIA DW and Adult Programs, states have the authority to enter into contracts with Institutions of Higher Education or other eligible training providers to facilitate the training of multiple individuals in high demand occupations, so long as the contract does not limit customer choice.

- Priority for the use of the WIA Adult Program funds is for recipients of public assistance and other low income individuals.

- ETA encourages states to also consider utilizing:  customized training; on-the-job training; contracts with institutions of higher education and other eligible training providers; individual training accounts; and registered apprenticeship.

- WIA Youth Program Funds - While the Act does not mandate the use of funds for only summer employment, the Congressional explanatory statement for the Act States that "the conferees are particularly interested in these funds being used to create summer employment opportunities for youth".  ETA encourages states and local areas to use as much of these funds as possible to operate expanded summer youth employment opportunities during the summer of 2009...  The Recovery Act also states that the work readiness indicator will be the only indicator to assess the effectiveness of summer employment.

- The period of "summer" will be from May 1 - September 30, 2009.  Summer employment is defined as any set of allowable WIA Youth services as long as it includes a work experience component (as defined in the WIA regulations at 20 CFR 664.460).

- LWIAs have the flexibility to determine if the 12 month follow-up requirement will be required for youth served with Recovery Act funds during the summer months only.

- LWIAs have the flexibility to determine the appropriate type of assessment and Individual Service Strategy for youth served with Recovery Act funds during the summer months only.

- LWIAs have the flexibility to determine whether academic learning must be directly linked to a summer employment opportunity.

- The work readiness portion of the skill attainment rate will be the only performance indicator used for youth that participate in summer employment only.

- Because all 10 youth program elements will already be available through existing WIA Youth funds, LWIAs will not be required to use Recovery Act f;unds for all 10 program elements.  Therefore, LWIAs have the flexibility to determine which program elements to focus on with Recovery Act funds.

- Procurement - Because LWIAs existing service providers have already been competitively selected, the use of these providers to deliver services with Recovery Act funds meets the intent of WIA Section 123 requiring competitive selection.  Any service provider competitively selected within the past 12 months may be used as a youth service provider without additional competition.

- Tracking and Reporting - Any youth served with Recovery Act funds that participate in summer employment only will be included in a separate Youth Recovery Act Report only and the work readiness indicator will be the only measure that applies to such youth.

- If a youth is served with Recovery Act funds beyond September 30, he/she would also be included in the regular WIA reporting venues.